Markets unfazed after expected rate hike

Calcutta News.Net
Thursday 16th June, 2011

Indian equities markets were largely unchanged Thursday noon after the Reserve Bank of India, predictably, hiked the repo rate by 25 basis points -- the tenth interest rate hike since March 2010.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,060.11 points, was ruling at 18,052.69 points -- down 79.55 points or 0.43 percent from its previous close at 18,132.24 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading in the red at 5,416.6 points, down 0.57 percent.

Broader markets continued to rule subdued, with the BSE midcap index down 0.55 percent and the BSE smallcap index trading 0.33 percent lower.

'The challenge of containing inflation and anchoring inflation expectations persists,' said the RBI in the mid-quarter monetary policy review.

'Based on the current and evolving growth and inflation scenario, the Reserve Bank will need to persist with its anti-inflationary stance of monetary policy,' it added.

Have your say on this story